UNIDO supports BRICS cooperation on e-commerce

The United Nations Industrial Development Organization (UNIDO) in cooperation with the Shanghai Academy of Social Science (SASS) has brought together experts from BRICS countries and international organizations to discuss e-commerce.

The main objective of the Expert Group Meeting on “BRICS plus E-commerce Cooperation” was for participants to formulate guidelines for governance on a range of e-commerce resources, including the e-commerce platform, the Charter of E-commerce Industry Alliance, and a BRICS e-commerce cooperation strategy.

E-commerce enables SMEs to connect with the international market, whilst linking customers to manufacturers in an integrated way. This has promoted the globalization of trade, accelerated the circulation of commodities and injected new vitality into production and consumption, thereby contributing to and catalyzing industrial development in an innovative way, helping to reduce poverty, and generating employment for women and youth along the way.

On opening the meeting, which was part of an inter-regional project developed by UNIDO with support from China, Philippe Scholtes, Managing Director of Programme Development and Technical Co-operation at UNIDO, recognized the role of e-commerce in inclusive and sustainable industrial development. He indicated that 2017 was a very positive year for the e-commerce sector in the BRICS, which can be seen in retail e-commerce sales, which stood at $554 billion in 2017. He mentioned that UNIDO has established and expanded partnership with various stakeholders to promote e-commerce development, including the International Telecommunication Union (ITU), the International Trade Centre (ITC), the World Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD), the United Nations Commission on International Trade Law (UNCITRAL), and Alibaba Group among others. He also noted that UNIDO Director General LI Yong recently signed a Joint Declaration to support the UNCTAD initiative on eTrade for All and to deepen the partnership with other agencies.

Representatives from companies from BRICS countries shared e-commerce business models and best practices, and experts from local companies, such as E-center Retail Association Austria and the Austrian Federal Economic Chamber also participated in the discussion. All participants acknowledged the importance of promoting cross-border trade through e-commerce development and highlighted the opportunities that e-commerce provides for all countries.

The importance of engaging governmental departments and business associations was stimulated during discussion of a BRICS e-commerce industry alliance to promote the rapid and efficient development of e-commerce in BRICS countries and other emerging economies.

UNIDO is taking a number of actions to promote e-commerce development in BRICS countries, including the production of an annual report in cooperation with SASS, and the development of an online e-commerce training manual to address the skill development barriers in BRICS nations.

The European Union has today issued a report on developments in Armenia and EU-Armenia relations
between June 2018 and early May 2019. The report comes ahead of the EU-Armenia
Partnership Council on 13 June. It finds that Armenia has stepped up its
efforts to reinforce and enhance its partnership with the EU, and that Armenia
consistently acknowledged the significant role the EU can play in the smooth
implementation of the country’s reform agenda. However, the reform process
remains at an early stage. The government’s roadmap for the implementation of
the EU-Armenia Comprehensive and Enhanced Partnership Agreement will be an
important instrument in advancing reform plans.

“The European Union has been and will continue be the biggest supporter of the Armenian government’s ambitious reform plan, which is consolidating democracy, the rule of law and promoting human rights in the country”, said the High Representative of the Union for Foreign Affairs and Security Policy/Vice-President of the European Commission, Federica Mogherini. ”Armenia is an important partner for the European Union, and together we are focussed on implementing our wide-reaching bilateral agreement, as well as delivering concrete results within the Eastern Partnership. We always keep firmly in mind that our aim is bringing tangible benefits to our citizens.”

“The EU and Armenia are strong partners and we stand ready to support concrete reforms, including in the area of justice and education, which are key for the people”, said the Commissioner for European Neighbourhood Policy and Enlargement Negotiations, Johannes Hahn. “The swift implementation of the Comprehensive and Enhanced Partnership Agreement offers new economic opportunities for all Armenian citizens.”

After the political changes in Armenia last year,
early parliamentary elections were held in December 2018. The EU was the
largest single contributor to the elections, providing technical equipment and
supporting actions in favour of democracy and civic participation. According to
the International Elections Observation Mission, the elections respected
fundamental freedoms and enjoyed broad public trust. In addition, the Government
highlighted the need for independence, accountability and efficiency of the
judiciary. In September 2018, the EU and Armenia launched the EU-Armenia
Strategic Policy Dialogue in the Justice Sector. The EU stands ready to support
reform in this crucial field.

Total EU-Armenia trade increased by 15% over the past
year reaching a total value of €1.1 billion. Armenia benefits from the EU’s
Generalised Scheme of Preferences plus (GSP+), which is a special incentive
arrangement for sustainable development and good governance. More than 96% of
EU imports eligible for GSP+ preferences from Armenia entered the EU with zero
duties in 2017. The extension of the core Trans European Transport Network (TEN-T) to Armenia was finalised in November 2018.
The Indicative TEN-T Investment Action Plan was published in January 2019 and also includes road safety as one of its
priorities.

An EU-Armenia Education Policy Dialogue was
inaugurated in March 2019 to support the reform in the education sector. Thanks
to the support of the Erasmus+ capacity building projects, Armenian universities have been able to
upgrade their administrative and organisational structures and modernise study
courses. More than 2,700 students and university professors have benefited from
EU-Armenia academic exchanges and mobility projects through Erasmus+ since
2015. At the end of 2018, a new ‘EU4Innovation’ programme worth €23 million was
launched aimed at matching the skills of university graduates with the
requirements of the labour market. The programme will create a EU4Innovation
Centre for universities and an EU Convergence Centre to bring together
universities and private sector, complemented by an incubator for technology
start-ups.

The EU is the biggest provider of financial support
and a key reform partner in Armenia. The EU stands ready to continue engaging
in Armenia and provide support through political dialogue, financial and
technical assistance, to support the Armenian government ambitious reforms for
the benefit of the citizens of Armenia and EU-Armenia cooperation.

Global growth slowed sharply in late 2018
and is now stabilising at a moderate level. Escalating trade conflicts and
dangerous financial vulnerabilities threaten a new weakening of activity by
undermining investment and confidence worldwide, according to the OECD’s latest Economic Outlook.

The global economy is expected to achieve
moderate but fragile growth over the coming two years. Vulnerabilities stem
from trade tensions, high policy uncertainty, risks in financial markets and a
slowdown in China, all of which could further curb strong and sustainable
medium-term growth worldwide.

The OECD projects that the global economy will grow by 3.2 per cent
in 2019 and 3.4 per cent in 2020. The Outlook includes downward revisions for
many major economies and warns that current growth rates are insufficient to
bring about major improvements in employment or living standards.

The Outlook identifies continuing trade
tensions as the principal factor weighing on the world economy. It notes that
world trade – a key artery of the global economy – is projected to grow by just
over 2% this year, which would be the lowest rate in a decade. It underlines
that the current cycle of trade disputes is hurting manufacturing, disrupting
global value chains and generating significant uncertainty that is weighing on
investment decisions, and highlights the risk of further disruption.

China remains key to global economic
growth, according to the Outlook. Significant fiscal policy stimulus has
buffered the economy as it rebalances from investment and export-led growth to
a more domestic footing. A sharper slowdown than already seen in China would
pose important risks to both global growth and trade prospects.

“The fragile global economy is being
destabilised by trade tensions,” said OECD Chief Economist Laurence Boone,
launching the Outlook during the annual OECD Forum in Paris. “Growth is stabilising but the economy is weak and there are
very serious risks on the horizon. Governments need to work harder together to
ensure a return to stronger and more sustainable growth,” Ms Boone said.

The Outlook calls on governments to act now to ensure a stronger
economic future. It calls for a return to international cooperation and
multilateral dialogue to restore predictability in policy and relaunch trade.
It renews calls for combining structural reforms in all euro area countries
with additional public investment in low-debt European countries. This should
focus on digital, transport and energy networks as well as the education,
training and competition reforms needed in the 21st Century economy,
which would add momentum to a growth rebound, boost productivity and spur wage
growth over the medium term.

Related

ADB Private Sector Deal to Promote Solar Power in Afghanistan

The Asian Development Bank (ADB) has signed a $4 million loan with a
special purpose vehicle and subsidiaries owned by the 77 Construction,
Contracting, and Trading Group (77 Group), an international civil works
contracting firm headquartered in Turkey, to help build a 15.1 megawatt (MW)
solar power plant and promote the development of renewable energy in
Afghanistan.

The borrower is Barakat Kandahar Solar Energy (BKSE), a special purpose
vehicle majority owned by 77 Afghanistan, a subsidiary of 77 Group. The
co-borrowers include three subsidiaries of 77 Group. The agreement was
signed by Principal Investment Specialist at ADB’s Private Sector Operations
Department Ms. Sonali Tang, and Chairman, BKSE, and owner of 77 Group Mr.
Suleyman Ciliv.

“Having a stable, sustainable, and reliable energy source is important
for the growth and development prospects of Afghanistan, where power generation
and access is one of the lowest in the world,” said Senior Public–Private
Partnership specialist at ADB’s Office of Public–Private Partnerships Mr.
Mohammed Azim Hashimi. “ADB’s support for this important project will help
provide long-term financing that is not available locally to build and operate
a state-of-the-art solar power plant in Afghanistan.”

“77 Group would like to thank ADB for paving the way for investors in
Afghanistan by supporting the first private sector-financed independent power producer
,” said 77 Group representative and project director Mr. Burak Unsal. “77 Group
is keen to work with ADB on future renewable energy investment projects.’’

Afghanistan ranks in the bottom 5% in terms of per capita electricity
usage, with only 30% of the country’s population connected to the grid in 2015.
In terms of energy mix, solar power accounts for only about 1% or 3 MW of the
country’s total installed generation capacity. This is despite Afghanistan
having about 220,000 MW of solar power generation potential. The Government of
Afghanistan aims to develop the country’s renewable energy generation,
including solar power, so it can contribute at least 5,000 MW (40% share) to
the national grid by 2032.

The Kandahar Solar Power Project will install a 15.1 MW solar
photovoltaic power plant and related facilities, increasing the supply of clean
power to the domestic grid in Afghanistan. The power plant will generate about
27.5 gigawatt-hours of electricity annually and avoid 8,500 tons of carbon
dioxide emissions. It will also help lift the share of renewable energy in the
country’s total installed power generation capacity to between 4,500 MW and
5,000 MW by 2032.

ADB will also administer a $3.85 million loan from the Canadian Climate
Fund for Private Sector in Asia II (CFPS II) for the project. CFPS II was
established in March 2017 to support greater private sector participation in
climate change mitigation and adaptation in low and lower middle-income
countries in Asia and the Pacific.